While steel consumption in Europe has shrunk by 30 per cent, triggering overcapacity issues across the industry, European producers enjoy much lower production costs than their Romanian counterparts, Bruno Ribo, General Manager of ArcelorMittal Galati, told Business Arena in an exclusive interview. Ribo emphasized that the current energy framework is too burdensome for the Galati steel mill, while the regional Balkan and Black Sea area markets are, possibly, some of the most challenging in the world.
What are the main challenges that you have been facing?
The current energy framework, gas and electricity, has been and continues to be a major concern for us. Some steps have been taken, but they are not yet sufficient. We are hoping that the measures announced by the Government will answer our needs and will take into account all our recommendations.
The government needs to protect its key-industries by offering them specific measures. What we are asking for has already been in place in other European Union countries. We are not asking for incentives or favors, but for the same conditions that similar industries benefit from elsewhere in Europe.
Let’s not forget that we operate in a regional market and we compete with steel producers who pay virtually half of our energy prices and have very low environment protection costs.
Our second major concern is our natural market – the Balkans and the Black Sea – which is, possibly, the most challenging in the world.
Europe’s steel consumption has decreased by 30 per cent, placing all producers in overcapacity. In our area the situation is even tougher, as the prices are lower than those in the rest of the Europe.
What are your objectives for the near future?
The main objective of ArcelorMittal Galati is to produce steel in a sustainable and safe way. Safety remains our top priority. The quality of our products and client services, innovation, and reducing costs come next on our agenda.
Our priorities, vision and mission are embedded in what we are calling our Transformation Program. A first step, named ARC 2012, ended recently with good results (we have improved our efficiency by 15 per cent), the next step, named ARC 2015+, is now in progress.
The current energy framework, gas and electricity, has been and continues to be a major concern for us. Some steps have been taken, but they are not yet sufficient. We are hoping that the measures announced by the Government will answer our needs and will take into account all our recommendations.
The government needs to protect its key-industries by offering them specific measures. What we are asking for has already been in place in other European Union countries. We are not asking for incentives or favors, but for the same conditions that similar industries benefit from elsewhere in Europe.
Let’s not forget that we operate in a regional market and we compete with steel producers who pay virtually half of our energy prices and have very low environment protection costs.
Our second major concern is our natural market – the Balkans and the Black Sea – which is, possibly, the most challenging in the world.
Europe’s steel consumption has decreased by 30 per cent, placing all producers in overcapacity. In our area the situation is even tougher, as the prices are lower than those in the rest of the Europe.
What are your objectives for the near future?
The main objective of ArcelorMittal Galati is to produce steel in a sustainable and safe way. Safety remains our top priority. The quality of our products and client services, innovation, and reducing costs come next on our agenda.
Our priorities, vision and mission are embedded in what we are calling our Transformation Program. A first step, named ARC 2012, ended recently with good results (we have improved our efficiency by 15 per cent), the next step, named ARC 2015+, is now in progress.
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